Members’ Paid Directorships and Consultancies

Edward Leigh Excerpts

Wednesday 25th February 2015 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

rose—

[Sir Edward Leigh (Gainsborough) (Con)]

rose—

[Ms Eagle]

I will give way to my hon. Friend first and then to the hon. Gentleman, but after that I really must get on with my speech.

--- Later in debate ---

[Sir Edward Leigh]

As a matter of interest, will the Labour Front Bench commit to implementing the pay award from the Independent Parliamentary Standards Authority in full?

[Ms Eagle]

My understanding of our position on the IPSA pay award is that the leader of our party has said that it should not go ahead as long as other public sector workers and workers in this country are experiencing a huge standard of living crisis. That is the situation as set out by my right hon. Friend.

It is time that we acknowledged the very different context in which we must all do our jobs, as it has changed. A YouGov poll in 2013 showed that 62% of people felt that MPs should focus on their parliamentary job full time, and over half favoured an outright ban on all second jobs. The proposals in the motion are just a start, but if enacted they would enable us to deal with the ongoing and corrosive issue of remunerated interests, and to begin to restore the health of our democracy and our constituents’ trust in the people they send to this place.

Let me turn to the actual terms of the motion, rather than the wildly inaccurate version that the Prime Minister sought unsuccessfully to dismiss earlier today. Our proposal states clearly that after

“the start of the next Parliament”

no Member of the House should be permitted to hold a directorship or a paid consultancy or, if our manuscript amendment had been accepted, be a paid trade union official. That is a commitment that we will honour in the Labour party by changing the parliamentary Labour party standing orders. All our existing Members of Parliament and candidates who are standing at the general election have been put on notice to expect that.

If the Government had accepted that rule when we first argued for it in 2013, the reputational damage inflicted this week would not have happened. The motion also states that we need

“a wider regulatory framework for…second jobs”

for MPs. The Prime Minister was wrong when he sought to characterise our proposals as an outright ban. We have set out some ways in which a regulatory framework might operate. That could include setting a cap on earnings from second jobs that is sufficiently high to allow, for example, Members to maintain professional qualifications. However, we will consult on that point with everyone who wishes to share their views. Our aim is to get a system that is fair and workable.

Our intention in the motion is simple. We need to be completely clear with the public that when they do us the honour of electing us to Parliament, they can expect our attention to be focused primarily on serving them.